Measures taken in the area of corporate income tax

21.05.2020, 13:00
The Government of the Slovak Republic in cooperation with the Ministry of Finance of the Slovak Republic presented Amendment No. 120/2020 Coll. (hereinafter referred to as ″the Amendment no. 3″) amending Act No. 67/2020 Coll. which introduces the package of tax measures in relation with the spread of the new disease COVID-19. The National Council of the Slovak Republic approved the government’s proposed Amendment No. 3 to the Act on 13 May 2020. It was published in the Collection of Deeds on 20 May 2020. It entered into force on the same day.
Act no. 67/2020 Coll. has already been amended by Act no. 96/2020 Coll. (hereinafter as "Amendment No. 2"), the changes are effective from 25.4.2020. Amendment no. 2 is also considered in our post.
The Regulation of the Government of the Slovak Republic no. 104/2020 Coll. (hereinafter the "Regulation") valid as from 30 April 2020 introduces possibility to pay tax advances based on 2018 tax return or 2019 tax return depending on which option is more advantageous for the tax payer.

We bring you amendments to Act no. 67/2020 Coll. on certain extraordinary measures in the financial field in relation with the spread of the dangerous contagious human disease COVID-19, taking into account all related Amendments concerning new measures in the field of corporate income tax.

Deadline for filing of the income tax return

Extension of the statutory deadlines for filing of income tax return (hereinafter "tax return"), in the case the last day of the deadline for filing expires during a pandemic period. The duration of the pandemic is set for the period from 12.3.2020 until the end of the calendar month, when the Government of the Slovak Republic will recall the emergency situation.

The deadline is automatically extended to the end of the calendar month following the month in which the pandemic period ended. Within the same deadline the taxpayer, taxable person or an heir is obliged to paid income tax liability.

In practice if e.g. the Government of the Slovak Republic will declare end of pandemic period caused by virus COVID-19 as of 31.7.2020, the deadline for filing tax return and due date for payment tax will be 31.8.2020.

Bankruptcy and liquidation

The special scheme is applicable also for taxpayers in bankruptcy or liquidation, if the last day for filing of the tax return falls for on a period of pandemic. Also, in this situation the deadline for filing of tax return will be extended to the end of the calendar month following the month in which the pandemic period ended.

Notification of extension of deadline for filing a tax return

Taxpayers can use the institute of extending the deadline for filing the tax return based on officially submitted notification. The deadline can be extended by three months or in case of foreign income by six calendar months from the ordinary deadline. The taxpayer in submitted notification shall indicate a new period which end no later than the last day of the calendar month in which the tax return is submitted and the tax shall also be payable within that new period.

Example:

Taxpayer, legal person, has taxable period fiscal year ending on 31.3.2020. The deadline for filing of the tax return and due date for payment of tax liability would be 30.6.2020. Taxpayer can file the notification and extend the deadline by three months, i.e. to the 30.9.2020.

In the case the taxpayer has not have a possibility of extension of deadline and pandemic situation would end in July 2020, taxpayer would be mandatory to fill tax return and pay tax liability until 31.8.2020.

Taxpayer can file the notification till the last day of month following the month when pandemic situation ended, i.e. 31.8.2020.

Bankruptcy and liquidation

Notification on prolongation is not applicable for taxpayers in bankruptcy or liquidation. Such taxpayer can request tax administrator for extension of deadline. Request is necessary to file 15 days before expiring the original deadline for filing tax return, at latest.

Taxpayers, who have already submitted the notification of extension of deadline 

It is important to note that the extension of the statutory deadline also applies to taxpayers who have already submitted a notification of extension the deadline for filing the tax return. These are, for example, taxpayers who have extended the deadline for filing tax return for taxable period 2019 to 30.6.2020. Assuming the end of pandemic period on July 2020, the deadline for filing tax return and due date of tax liability are automatically extended to 31.8.2020, regardless of the extension of the deadline specified in the notification or request.

Assignation of tax liability paid

The postponement of the period for filing the tax return also automatically means a postponement of the assignment of the tax proportion to the beneficiaries of the paid tax. In a tax return filed within this extended statutory period, the taxpayer may also assign the proportion of tax liability paid after all legal conditions have been met.

With regard to employees whose annual clearance were settled by the employer, they submit to the tax administrator a statement of assignation of the proportion of paid income tax no later than the last day of the second month following the end of the pandemic situation.

The law only regulates a special deadline for submission of the statement of assignation of the proportion of paid tax and statement of a tax receipt. The conditions and method continue to be assessed according to the applicable Income Tax Act.

The beneficiaries of the proportion of the paid tax may also use the funds obtained from the tax assignment not only during the pandemic period but until the end of 2021 in order to help and mitigate the negative consequences of the pandemic, regardless of whether or not such activity was considered to be the subject of their activity.

Example:

The subject of activity of a civic association is ″sports support and development″. In May 2019, the association received tax proportion of the paid tax, this tax proportion must be used until the end of 2020 in accordance with Section 50, subsection 11 of the Income Tax Act. However, in case the civic association has not used all funds for sports support and development, in the period from 12 March 2020 until the end of the pandemic the civic association may use these funds also for mitigation of negative consequences of the pandemic.

In addition, in order to mitigate the consequences of the pandemic, the Amendment no. 2 determined the postponement of deadline for using the funds obtained from the tax assignment also for 2018 assigned to the beneficiaries in 2019 by one calendar year, i.e. until the end of 2021. In relation to the extended deadline for the use of funds from the tax proportion of the paid tax, the deadline for publication of precise specification of the use of the paid income tax obtained in 2019 is extended to the end of May 2022.

Amendment no. 3 allows the assignation of the tax liability by the tax administrator as follows:

  • If the due date for filing the tax return (FO and PO) was 31 March 2020, and at the same time the tax return was also filed within this deadline, in this case the tax administrator will transfer the assignation of the tax liability by 31 July 2020.

The assignation of the tax liability will be transferred only if all conditions set out in Section 50 subsection 6 of Act No. 595/2003 Coll. on income tax, including the absence of tax arrears within 15 days after 31.3.2020. in an amount exceeding EUR 5.

  • The tax administrator will transfer the assignation of the tax liability by 31 August 2020 in the event that the employee has submitted a statement of assignation of the proportion of paid tax on the form under the special regulation of the Income Tax Act by 30 April 2020.
  • In the case of taxpayers applying the economic year for which the due date for filing the tax return expires during the pandemic period, and the tax return is also filed within this period, the tax administrator will transfer the assignation of the tax liability within three months from the due date.

Example:

A taxpayer whose taxable period is the economic year ending in February 2020 has the due date for filing a tax return on 31 May 2020, and within this due date will also file a tax return, including a statement of assignation of the tax liability. In this case, the tax administrator will transfer the assignation of the tax liability by 31 August 2020 (following the point c) above).

The same application is for a taxpayer whose taxable period is an economic year whose extended the deadline for filing a tax return by submitting notification under the Income Tax Act while this extended period will expire during the pandemic period.

A taxpayer whose taxable period is an economic year and whose due date for filing a tax return expires on 31 March 2020 (i.e. the period extended by 6 months based on the notification), the tax administrator will transfer the assignation of the tax liability by 31 July 2020 (following the point a) above).

If the taxpayer files a corrective tax return (statement) stating a lower tax liability compared to the regular tax return after the transfer of the assignation of the tax liability, the difference on the transferred assignation of the tax liability will be offset by the taxpayer's overpayment stated in the corrective tax return.

If the taxpayer submits:

  • corrective tax return in the period from 1 April 2020 to 31 July 2020
  • corrective statement from 1 May 2020by 31 August 2020

i.e. before the tax administrator transfer the assignation of the tax liability to the authorised recipient, it is considered that the due date for filing a regular tax return has not been met and the tax administrator will transfer the assignation of the tax liability to the authorised recipient only after the end of the pandemic situation.

Income tax advances

Another measure to mitigate the pandemic consequences is the possibility not to pay corporate income tax advances for which the due date expires during the pandemic period. The non-payment of tax advances should be used for an advance period immediately following the period in which the taxpayer’s sales were decreased by 40% compared to the same period in the previous calendar year 2019 or the same period in an economic year.

Example:

a)    Monthly advances

In the case that a taxpayer who pays advances on a monthly basis experiences a sales drop of at least 40% in April 2020 compared to the calendar month of April 2019, the taxpayer can use the possibility  not to pay an advance in May 2020.

b)    Quarterly advances – economic year

In the case that a taxpayer pays advances on a quarterly basis, it is necessary to compare the total sales of three months in the relevant quarter with the total sales declared in the same three months in 2019.

Example:

A taxpayer whose tax period is an economic year is required to pay quarterly advances, for example for the months of May, of June and July 2020, which are payable by 31 July 2020. The taxpayer will compare sales declared in the months of February, March and April 2020 with sales declared in the months of February, of March and of April 2019.

The possibility of non-payment of tax advances can be used by the taxpayer based on a submitted declaration on the fulfilment of conditions to the relevant tax administrator. The declaration must be filed electronically no later than 15 days before the due date of the relevant income tax advance.

The possibility of non-payment of income tax advance will be applied for the first time on income tax advance which is due in May 2020.

The Act allows non-payment of advances also to taxpayers whose tax administrator has issued a decision of a different payment of advances.

Example:

A tax administrator has issued a decision to a taxpayer (paying monthly advances) on the payment of advances in a different otherwise for the months of April, of May and June 2020. The taxpayer then discovers that his sales in April 2020 were decreased by more than 40% compared to April 2019. Despite the taken decision, the taxpayer can submit a declaration and use the possibility of non-payment of a tax advance for the month of May 2020.

For the purposes of fullfilment of the conditions for non-payment of tax advances, sales shall mean:

  • Revenues for taxpayers using the double-entry bookkeeping system and for taxpayers whose economic result is reported in individual annual report based on international financial reporting standards,
  • Income from the sales of products, of goods and services after the deduction of discounts for taxpayers using the single-entry bookkeeping systems, taxpayers who maintain tax records and taxpayers who maintain records on the application of flat-rate expenses.

The Amendment No. 2 does not explicitly stipulate a deadline for the settlement of advances. This means that the taxpayer should settle them within the deadline for the submission of tax return for the taxable period of 2020.

Pursuant to the Regulation, the taxpayer has the option of paying advances on income tax calculated according to the tax return for the taxable period 2019 submitted in the period from 1 January 2020 to the end of the pandemic period, provided that the following conditions are met:

  • the due date for submitting the tax return expires during the pandemic period,
  • the amount of the advance payment calculated according to the tax return for the taxable period 2019 is lower than the amount of the advance payment calculated according to the tax return for the taxable period 2018; this already applies to advances due on 30 April 2020.

In the situation that the taxpayer calculate a higher amount of advance payments from the submitted tax return for taxable period 2019, this taxpayer will continue to pay advances according to the tax return submitted for taxable period 2018 until the due date for filing tax returns for 2019, i.e. till the end of month following the end of the pandemic period.

Abovementioned regulation does not apply to periods (months, quarters) for which the taxpayer has already made a declaration on the basis of which he has exercised his right not to pay advances due to a 40% decrease of sales in a given period, nor does it apply to taxpayers who pay advances by decision the tax administrator on the payment of advances otherwise.

If the taxpayer has already paid the advance due in April 2020 and the amount of advance payment by the tax return  for taxable period 2019 was lower than by the tax return for taxable period 2018, the taxpayer may request the tax administrator for a refund of the difference in accordance with the provisions of the Income Tax Act.

The same applies to a taxpayer whose taxable period is an economic year.

Amendment no. 3 also provides the refund of the overpayment of income tax advances resulting from the tax return filed during the pandemic period.

The tax administrator will refund the overpayment on advances in the following deadline:

  • 30 days from the submission of the application, respectively
  • within 31 May 2020, if the request for refund was submitted by 30 April 2020.

In the case of already rejected requests for refund the overpayment of advances, it is necessary to proceed with their repeated submission.

Overpayments on income tax advances will be refunded to the taxpayer only after the application of the procedure specified in the Tax Code.

The new provisions of the law can also be applied to a taxpayer whose taxable period is an economic year.

Deduction of the Tax losses

To mitigate negative consequences of the pandemic, the Amendment No. 2 allows taxpayers to deduct unutilized tax losses reported in the tax periods ended in 2015 to 2018.

The taxpayer is entitled to deduct those parts of tax losses that may be utilized in line with Act No. 595/2003 Coll. on Income Tax in tax period 2019 or later. It means not those parts of tax losses for which the deduction entitlement ceased due to the recognition of an insufficient amount of the tax base in previous tax periods.

The total amount of tax losses which can be utilized in line with Amendment No. 2 is EUR 1,000,000.

This deduction of the tax losses can be applied only once, especially in an income tax return for which the submission deadline expires during the period between 1 January 2020 and 31 December 2020.

Example:

Taxpayer has taxable period calendar year and due day for filing corporate income tax return (furthermore “CIT return”) for taxable period 2019 will expire on 31.08.2020 (in our example it is expected that the end of pandemic situation will be determined by the Government in July 2020, i.e. an automatic extension will be set at the end of following calendar month after the month of pandemic situation will end – 31.08.2020). In taxable period 2019 taxpayer declared the tax base in the amount of EUR 25,000.

In taxable period 2015 taxpayer declared tax loss in the amount of EUR 200,000 and in taxable periods 2016, 2017 and 2018 taxpayer declared insufficient amount of the tax base to be able to utilize the tax loss up to amount of EUR 50,000 (1/4 of tax loss declared in taxable period 2015). Since the unutilized ¾ of tax loss from 2015 has ceased up in tax periods 2016, 2017 and 2018, in CIT return for 2019 the taxpayer can utilized only the last one-fourth of tax loss declared in taxable period 2015 (EUR 50,000), up to the amount of tax base calculated in 2019, i.e. in the amount of EUR 25,000.

Example:

The taxpayer calculated the tax base in the amount of EUR 2,000,000 in CIT return for 2019 filled within the due date on 31.08.2020. In taxable period 2018 reported the tax loss in amount of EUR 1,400,000. In line with current wording of Section 30 of Act No. 595/2003 Coll. on Income Tax, the taxpayer may utilize one-fourth of tax loss declared in 2018 in amount of EUR 350,000 from the tax base declared in taxable period 2019. In case of applying Section 24 subsection b)  of the Amendment No. 2, the taxpayer can deduct tax loss declared in 2018 up to amount EUR 1,000,000 from the tax base calculated in 2019. However, the taxpayer is not obliged to automatically apply this tax losses deduction. It is on the taxpayer’s decision whether he will pursue standard tax loss utilization of one-fourth as specified in Section 30 of Act No. 595/2003 Coll. on Income Tax or whether he will apply Section 24 subsection b) of the Amendment No. 2. If the taxpayer decides to deduct the tax loss according to the conditions defined in Section 24b of the Act no. 67/2020 Coll., cannot simultaneously claim a deduction of tax loss pursuant to Section 30 of the Income Tax Act and vice versa.

In the case that a taxpayer decides to utilize tax loss deduction pursuant to the Amendment No. 2, this taxpayer shall proceed from the oldest reported tax loss to the most recently reported tax loss. For example, if a taxpayer reported a tax loss in 2015, 2016 and 2017, this taxpayer shall first deduct the remaining part of the tax loss from 2015, then the remaining part of the tax loss from 2016 and then the remaining part of the tax loss from 2017 up to the amount of the calculated tax base (up to a maximum of EUR 1,000,000).

Example:

The taxpayer whose taxable period is calendar year has declared tax loss/base as follows:

  • 2015 - tax loss in the amount EUR 100,000 (1/4 of tax loss 25 000 EUR);
  • 2016 - tax loss in the amount EUR 140,000 (1/4 of tax loss 35 000 EUR);
  • 2017 - tax base in the amount EUR 20,000;
  • 2018 - tax base in the amount EUR 25,000;
  • 2019 - tax base in the amount EUR 100,000.

It was not able to utilize the first 1/4 of tax loss reached in 2015 due to the fact that the taxpayer reached tax loss in 2016 as well.

In the taxable period 2017 the taxpayer utilized the second 1/4 of tax loss declared in 2015 (EUR 25,000) only up up to the amount of calculated tax base, i.e. in the amount of EUR 20,000; It was not able to utilize first 1/4 of tax loss declared in 2016 due to insufficient tax base in 2017.

In the taxable period 2018 the taxpayer utilized the third 1/4 of tax loss declared in 2015 in amount EUR 25,000. It was not able to utilize 1/4 of tax loss declared in 2016 due to insufficient tax base in 2018.

In 2019 the taxpayer can deduct from the calculated tax base in the amount of EUR 100,000 the last 1/4 of tax loss declared in 2015 in amount EUR 25,000 and last two 1/4 of tax loss declared in 2016 deductible in 2019 and 2020 in total amount EUR 70,000, i.e. total deductible tax losses  in taxable period 2019 is in the amount of EUR 95,000.

In relation to the application of such tax loss deduction, a taxpayer is obliged to keep tax evidence of the amounts of the deducted tax loss in order to be able to utilize deduction of the remaining part of the unutilized tax losses in the following tax periods based on the rules specified in the Income Tax Act.

If a taxpayer’s tax period is an economic year, he should apply the tax loss deduction in his tax return only if the tax period ends no earlier than on 31 October 2019, i.e. the statutory three-month period for the submission of a tax return will expire in January 2020. This adjustment does not apply to the taxable period of a taxpayer who has e.g. taxable period from 1 October 2018 to 30 September 2019, but the deduction of the total tax losses can be claimed in the tax return only for the tax period from 1 October 2019 to 30 September 2020 (the deduction of the total tax losses cannot be applied during two taxable periods).

Example:

A taxpayer with a taxable period from 1 November 2018 to 31 October 2019 (economic year) calculated a tax base of EUR 25,000 for respective taxable period. The due date for filing a corporate income tax return for the taxable period from 1 November 2018 to 31 October 2019 was on 31 January 2020. The taxpayer for the previous taxable period from 1 November 2017 to 31 October 2018 declared a tax loss in amount of EUR 50,000 (1/4 of declared tax loss in the amount of EUR 12,500). As the taxpayer's taxable period ended on 31 October 2019, the taxpayer is entitled to deduct 2/4 of tax loss declared in taxable period from 1 November 2017 to 31 October 2018 up to the reached tax base EUR 25,000, i.e. taxpayer is entitled to deduct 1/4 of tax loss for the taxable period from 1 November 2018 to 31 October 2019 and 1/4 of tax loss for the following taxable period from 1 November 2019 to 31 October 2020.

Example:

A taxpayer with a taxable period from 1 October 2018 to 30 September 2019 (economic year) and the due date for filing a corporate income tax return on 31 December 2019 has extended the deadline for filing tax return by three calendar months upon submission of the notification to the Tax Authorities until 31 March 2020. Due to the fact that the taxpayer's taxable period ended before 31 October 2019, the taxpayer is not entitled to deduct the total tax losses reported for the tax periods from 2015 to 2018 in the tax period from 1 October 2018 to 30. September 2019. However, the utilization of the tax loses reached from 2015 to 2018 may be applied in the tax return for the tax period of the economic year from 1 October 2019 to 30 September 2020.

The Ministry of Finance of the Slovak Republic issued an amended instruction to ensure a uniform approach for filling income tax returns according to the applicable Income Tax Act, for filling the personal income tax return - type B and instruction for filling in the corporate income tax return in connection with by deducting tax losses according to § 24b of Act no. 67/2020 Coll., which you can find on the official website of the Ministry of Finance of the Slovak Republic MF SR

Health care providers

Similarly, for the healthcare provider, the deadline for notifying on withholding and payment of tax is postponed to the last day of the month following the month of the end of the pandemic period.

Income tax overpayment

Income tax overpayment reported in the income tax return submitted during the pandemic period shall be refunded by the Tax Authority within 40 days from the end of the calendar month in which the tax return has been submitted.

Tax overpayment claimed in a taxpayer’s income tax return for a tax period which equals the calendar year of 2019 which was submitted between 1 January 2020 and the start of the pandemic period (i.e. 12 March 2020) shall be refunded within 40 days from 31 March 2020. This provision is without prejudice to re-accounting of such tax overpayment based on the Tax Regulations.

Example:

A taxpayer has filed a corporate income tax return for the tax period of 2019 before the start of the pandemic (e.g. on 8 March 2020) and claimed a tax overpayment of EUR 300. In such case, the tax administrator shall refund the tax overpayment to the taxpayer within 40 days from the end of the calendar month in which the tax return was submitted, i.e. by 8 May 2020.

However, if the tax overpayment has arisen due to the payment of a higher amount than the tax obligation stated in the tax return, the taxpayer is obliged to file a request for refund of a tax overpayment in accordance with Section 79 of the Tax Administration Act.

The same procedure of the Tax Administration Act shall apply in the case that a taxpayer has not filed a request for refund of a tax overpayment directly in the income tax return.

Unjustified tax overpayment

We would like to draw your attention to the fact that a special penalty will be applied in the case that a taxpayer reports in his income tax return an overpayment higher than it should be and the overpayment is refunded to him by the tax administrator. If a tax audit discovers that the tax overpayment was unjustified, the taxpayer will have to pay a 100% penalty of the declared difference. In addition, the taxpayer will be required to refund the identified difference to the tax administrator.

This special penalty will not be imposed if a taxpayer submits supplementary or corrective tax return which reduces the tax overpayment provided that this tax return was submitted before the refund of the tax overpayment has been made to the taxpayer.

Example:

A taxpayer submits an ordinary income tax return claiming a tax overpayment of EUR 400. The tax administrator has refunded the overpayment within the stipulated deadline. A revised tax return subsequently submitted before the end of the pandemic, in which the taxpayer reduces his tax overpayment by EUR 200 shall result in:

  • a penalty of EUR 200 (i.e. 100% of the declared difference), and
  • the obligation to refund EUR 200 by which the original overpayment was reduced, and which has already been refunded to the taxpayer.

The supplementary income tax return

If the taxpayer identifies an obligation to file a supplementary income tax return and the deadline for submission would expire during the pandemic period, the taxpayer may also submit the supplementary tax return until the end of the month following the end of the pandemic period.

The pandemic period will not be taken into account related to calculation of the penalty for a possible tax increase in the supplementary tax return. The penalty will be calculated for the period from the end of the regular tax return period to 11 March 2020 (assuming payment of the tax arrears after the end of the pandemic period).

Measures in the field of motor vehicle tax

In the case that the deadline for submission of the tax return and a tax payment has expired during the pandemic, it is deemed to be observed if the taxpayer shall submit the tax return and shall pay the tax by the end of the calendar month following the end of the pandemic period.

During the pandemic, it is possible to defer the payment of motor vehicle tax advances. A taxpayer should use this option for the first time for the month of April 2020 with no need for a special notification submitted to the Tax Authorities.

Advances will be settled once an ordinary tax return is submitted for the tax period of 2020.

The mentioned above is related to monthly and quarterly motor vehicle tax advances as well as advances specified by the Tax Authorities based on a taxpayer’s request or specified by the Tax Authorities.

Accounting measures

Due to the negative consequences of a pandemic, some entities will not be able to meet their obligations objectively, the law allows entities to meet these missed obligations to the end of the third month following the end of pandemic situation or to the expiry of the deadline for submission of tax return under law, whichever is the earlier.

Forgiveness of missed deadline

Missing of the statutory deadline laid down by law, which has expired during the pandemic period, i.e. free of charge and the need for a decision will be forgiven in the situation if the taxpayer performs a missed action (e.g. fill the recall, submitting the required documents to the tax administrator, etc.) by the end of the calendar month following the end of the pandemic period, at the latest. Attention, this cannot be applied to file a tax return, recapitulative list and cumulative report, tax payment and payment of tax advanced.

Interruptions of tax audits and tax proceeding

Tax audit may be interrupted based on request of a taxpayer from the day following the day of submission of the request for suspension of tax audit until the end of the pandemic. Tax audits have been automatically interrupted from 12 March 2020 following the initial wording of Act No. 67/2020 Coll. ceases to be automatically interrupted pursuant to the Amendment No. 2.

However, if a tax audit has already been interrupted based on request of the taxpayer or if legal reasons for which the tax audit has been interrupted in compliance with the Tax Administration Act still exist, the tax audit remains interrupted.

The legal effects of acts performed during tax audits which were retroactively interrupted remain maintained.

In the case that a taxpayer does not submit a request for interruption of tax audit, the tax audit will continue without automatic remission of a missed deadline in actions related to the tax audits as specified above.

However, in the case that the deadline for an action has expired or the term for performance of a certain action is still ongoing in the period since 12 March 2020, such deadline shall be restored.

Example:

A taxpayer was obligated to submit evidence for tax audit within 15 days and the deadline has already expired. From the date of entry into force of the Amended No. 2, the 15 days period will be restored, inasmuch the automatic remission of a missed deadline will be no longer applied to this action.

If the deadline did not expire and a tax entity would still have e.g. 3 days to perform the action, the 15 days period would be restored on the date of entry into force of the Amended No. 2.

The above-mentioned applies only in case the taxable entity has not performed the action yet.

The same applies for tax proceeding.

Forfeit the right to impose a tax and termination and cessation of the right to recover tax arrears

Further, it was agreed that during the pandemic period the running of the time period is suspended when it could lead to the cessation of the right to levy tax or to recover tax arrears. This automatically extends the time limit for commencement of the tax audit.

Deferral of tax execution

The law stipulates the fact that the tax execution is postponed during the pandemic period, while legal effects of acts undertaken during the pandemic period remained effective until the date of entry of this law into force.

Want to know more?